2012. wow, i missed a couple of years. september 5th, 2014, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. we are joining you live this morning once again from new york city. i'm barack obaecom becky quick kernen and andrew ross sorkin. the nfl season kicked off last night with the seattle seahawks taking on the green bay packagers. the seahawks picking up where they left off last season. we're going to be talking a lot more football at 7:00 eastern with new england patriots owner bob kraft and future hall of fame quarterback tom brady. a lot more to talk about in this morning. >> the big story of the morning, the latest employment report. it is jobs friday. polled forecasters saying the

economy likely added 225,000 jobs last month. that would mark the second straight month payrolls increased by 225,000. we haven't seen a stretch that long since 1997. the unemployment rate expected to slip to 6.11%. futures ahead of those numbers and, of course, things can change dramatically in the morning. but right now, we have some red arrows with the dow, it opened down about 41.5 points. the s&p 500 would open off about 6.5 points and the nasdaq would open off about 9.5 points. again, we will -- those numbers -- >> doing a lot. >> almost like a discount before we get to 9:30. there you have it. >> you know, i see things that -- >> we're looking forhe -- >> the brothel, it's in usa today, this just in, brothel owner helped seal nevada's tesla deal. lance gillman is the owner of the famous mustang ranch brothel. you thought that was a ford

dealership, right? no? >> i was just asking if they had -- >> you know, yesterday you said nevada so well. nevada. >> did you check? >> i had to practice. >> for somebody -- >> because i like to say nevada. >> for some reason, new yorkers, when they say nevada, they said more -- just more nevada. and out there, it's nevada. >> i have to say, i always -- >> it's nevada. don't be pretentious for once. >> i did a show out there from los angeles. >> i asked around. there were a couple people who said nevada. >> of course. >> does this work? >> yeah. really? >> we love him, but -- beautiful, pretty in blue. pretty in pink, pretty in blue. in corporate news, apple is add

accounting stricter security measures. why? does this fly counter to everything? >> no. >> all right. it's a goal of keeping hackers out of your account, comes in the wake of last weekend's celebrity photo scandal. in an interview with the "wall street journal," apple's ceo tim cook says the company will alert users when someone tries to change a pats password or restore icloud data to a new budget. it seems to me if there's absolutely zero culpability for apple itself, then why are they worried about -- >> well, because there are always things you can do better. >> okay. shouldn't they have done these things before it happened, then? >> perhaps. >> i don't even have a beef with apple or tim cook. i'm just giving you grief because you defended them -- >> i did, i defended them. >> they went all crazy with the pr, that this wasn't us, now here is what we're doing, but i give you credit for this. >> when did you -- >> oh, yeah.

>> when you get into this? wow. >> i'm not in the stock. i want to see what the iwatch looks like. now there's reports that it's really going to show up. >> you do know this is the same company that raised higher taxes. >> i do. >> how does that escape your wrath? >> i'm not happy about that. >> positively in america. thanks, allen. apple isn't the only -- was it him? was it allen? >> no. andy silvris. apple isn't the only company dealing with cyber security issues. the journal reported a hacker broke into the healthcare.gov website in july. no reports that users' personal data was stolen. >> also, the government wants to declare metlife systemically important. the insurer is said to be exploring ways to try and fight the government's proposal. that label is used to i've

companies whose failures could pose a potential threat to financial markets overall. prudential financial and iag have already received that designation and it's obviously one that any company is trying to avoid. >> did you see this? and i didn't understand this. i understand why the company would be against this and i think it's actually reasons why the company may be right. gu guggenheim security saying despite the possibility of this happening, we think this is a long-term positive for metlife because we expect the government to -- the rules rather than subject metlife to bank-like capital firms and customers would prefer to do government with abdomen an insurer that the government said is too big too fail. >> i wonder if that is the case. >> would you decide that you want to do with that institution as opposed to one or the other? >> if there is a separation between them, i might.

i'd want to be sure, if there is a claim, if there's a lot of claims that come in at the same time, i'm going to get my money back. as andrew was mentioning, the futures are indicated lower, at least at this point this morning. right now, the dow futures down by about 43 the points. of course, yesterday we did see the s&p and the dow both hit record highs interdate before they retreated. the down was down about 8 points. the s&p off about 3 points. this is the first weekly decline in five weeks the major averages are on pace for at this point. if you've been taking a look at oil prices, at this point, oil up by about 49 cents. 94.94. wti is still below $95. hard to believe with all the turmoil we've seen in the middle east. let's take a look at what's been happening with the ten-year note. treasuries, the yield pushed higher to just under 2.45%. the dollar at least at this point looks like it is down against the euro, down against

the yen, down against the pound. the euro is trading below 1.30. 1.2956 after the big move you heard from the ecb yesterday, taking on these additional measures. that immediately put additional pressure on the euro. you see thatten continuing at least still below 1.30. >> they've tried, they've tried to get the euro more competitive. yellen and the fed here keeps making it impossible by staying easy for way too long. maybe they'll -- we're going to talk europe and i was surprised, it was my -- i thought i contended yesterday that europe would be scared by what they did and that we would like it because we're easing and they have down in europe and -- >> and if you think about it, we're done offer here. we're on the other side of all this stuff. so our markets know that. over there, they're on the front side of all this easing money. so if it's just a simple -- usually it's the opposite of what -- >> but if the following is --

>> but it's the most important way of looking at it. they're entering into an easing money phase. we're coming out of it. >> we think we're on the end of it. there's worry that there's something really on the end of it. >> we'll get more numbers today with the jobs number at 8:30. take a look. seema is still there. >> still here. >> she'll do anything to get on "squawk box." that's not necessary. anyway, no reason for you to do that. >> you could come off an angle. but anyway -- >> this is better b right? we have the global coverage. as you guys were mentioning, european markets, the speculation of a cease-fire between ukraine and russia as well as that ecb rate cut decision. feeling pressure over the last few days, but profit taking.

we've got to take a look at the markets, getting a lift on hopes of a resolution between pro russian separatistes and ukraine. keep an eye on the russian markets. guys, traders are talking about, as you were just pointing out, i was at a dinner with mayfair. no one was talking about mario draghi. the focus is the impact of the euro/dollar trade. after the ecb rate cut decision, currently trading below 1.30. why do we care? a weaker euro is not good for multi national businesses as it makes their products and services less competitive. some of the big names that have high exposure to europe include mcdonald's, priceline and all trading lower. lastly, we want to highlight a big mover on this side of the pond and that is bp after a u.s. judge ruled they were to blame for the largest oil spill in u.s. history. today, coming back, trading at

4600. >> thank you, seema. i have to look at a different camera. no one told me about this. we are -- you guys ahead to do this yet? >> once in a while. >> making her squawk debut, we'll start out calling this person karen paulstone. can you stick with us for a while? >> all right. our -- you know, put au -- >> orias. sometimes the pronunciation is tougher than -- >> if they just wrote it down. this is -- res asset management. the ceo. oh, man.

>> hooked on phonics, he need all of it. >> you start. >> it was easier when it was fidelity. >> phid the upside down e-l. what's your number today? >> i think anything over 200,000 is great. 220 is wonderful. what i think is most very important is that we start to see some wage growth as well as jobs growth because wages have been so staggering for the past couple of years. and retirees on fixed income and relying on interest rates, they're purchasing power is going down. we live in a consumer economy. it would be great if we get -- >> we had a -- you know, a mouthpiece for the administration on yesterday actually talking about how there is -- >> wait a second. who did you just call a mouthpiece? >> it's not me. >> anyway, i like dean, but he

is -- there's so much black. they want us with the spigots open forever, so they're going to argue there is total flack in the workforce so we're not going to get knit wage growth as long as there's slack. >> well, there are pockets. >> i agree. i think that there are -- you can't even find people without paying them more, right? that would be good, though, right? >> right. >> this means that the fed connects it, right? >> i think it's good for everyone. >> you see what i'm saying? is there slack or not? >> i think there is a lot less slack than the fed believes. although i have to say, all of this discussion about how much slack there is, i mean, obviously, at jackson hole, we spent all this time talking about the long-term unemployed or involuntary part-time workers, let's face it, if we were -- i keep saying to people, if we were trying to debate if they should be 2 1/2 or 3 1/2 or

4 1/2, slightly accommodative, slightly restrictive, this kind of fine tune it exactly how much slack there is would be important. we are hundreds of basis points below the neutral level. at zero -- i mean, i don't know exactly how much slack there is, but i know that there isn't enough slack to be, in my opinion, justified still sitting at zero interest rates. >> and you mentioned flavors. what about why are all the state's pension plans, why is everybody having trouble about meeting their targets. so, you know, that's the flip side of trying to get asset valued higher. you don't want to take any risks. >> if you were the guy managing the massive pension fund right now -- >> and should we be moving into that. >> whether it is the other parts

of this, of the credit markets that look very overheated. i would say, the concern about -- part of the problem with business, the one linger g lingering, i think, uncertainty is that what happens when the fed actually starts raising interest rates because the fed is going to keep telling us we have to be -- we need to provide support. so i think what we talked about, fiscal uncertainty has been reduced. i think there's greater composite about the economy. the one thing that's still out there is what happened when the fed starts raising interest rates. in a way, i think if we get off zee rob, get the process started and we all say -- >> how many board room conversations do you think right now there are boards sitting there saying, you know what? i think interest rates are going to jump. we should do something now or this is whag goes to happening. >> do you think that is the thought process? we may be having that conversation.

i'm not sure if they're having that conversation. >> i think there is some concern that things are doing well, but what happens when the fed starts raising interest rates? i guess all i'm saying is there's a lot of concern about this moving process and in a way just getting it going, while people are worried about that may ultimately -- >> the yields are worse. >> right. >> and they actually do. so do you think this europe is easing or tightening and yellen will -- will the euro continue to fall because we make good on our promises? >> well, i think inflation needs some help and growth sitting there is -- we're starting to see growth in the u.s. manufacturing is doing better. there is improvement. i think the same is probably

true in europe. we're missing right now the situation where when the s&p opens that 19 the 8 is exactly three times where it was since 2009. it's tripled during that pertd which has been an amazing thing. and it shows that there are buyers b there have been buyers of our market, there have been buyers of the european market over the past year, starting to come back to reflect something that's improving. but it's a slow process in part because, as you said, unemployment has become so structurally embedded. >> michelle, is your office down here? >> no. we're up in stafford. >> so coming here is easier, harder? >> it may be easier because i'll be heading out of the city. >> i'll mark you down.

>> i don't know. i've got a lot of people who get up an hour earlier. who wouldn't be very happy. >> you haven't been out there? >> i have once. >> better? >> better. >> okay. let's tell you about a truly sad moment in the entertainment world. losing another legend, comedian joan rivers passing away at the age of 81 years old. she got her big break on the "tonight show" with johnny carson. she was a member of the comcast family. she was the host of fashion police. she recently suffered a heart attack during a medical procedure. she was on life support for a week. new york health officials are now investigating the center where rivers recently underwent surgery. it was called yorkville endoscopic something or other. i read it yet. >> then she went to mt. sinai. her faim family praised the treatment she got at mt. sinai..

>> whatever happens, i think there are -- you know, it's a very simple procedure, really. it was an endoscopic procedure. she was on -- when i did that with the apprentice, the judge, she was one of the contestants. she was very sweet in person. >> i met her once out at -- we were both out and she was there. we were out and staying in a hotel. she was very nice in person. anyway, we wish her family all the best. when we come back on "squawk box" this morning, elon musk setting up shop in the desert. details of tesla's giga factory coming after this. stick around. we'll be right back. ing deeply ] [ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies.

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tax inversion. this is made up of ceos that made over $1 million in capitalization. over 70% of them said tax inversion are good for shareholders. nearly 60% said companies using

tactics like this are not acting in an unpatriotic way. 82% believe their firm is not being taxed fairley in the united states. for more on all of this on our global cfo council, go to cfocouncil.cnbc.com. i'm surprised that it would be 40% who would think that it was. >> you talk to individuals, and i won't mention any names, we talk to individual ceos about their individual situations and they're furious and livid and they're very plain spoken and they say it's a billion dollars more for me here. now, when i'm compete, a company that says the same thing abroad, and they have a billion dollars extra to spend on research or whatever it is that they're spending it on, how is it that the roads here are better than the roads in switzerland? how is it that the college --

tell me how, when the president -- you get to use all of stuff here, which by the way taxpayers paid for, the government didn't pay for that, they're -- >> i'm not going to argue about -- however, listen, we can change the law -- >> oh, good, that's big of you to admit that. >> however, clearly, a drug company, for example, like novartis -- i am making this up. if they are going to sell to markets in this country, there are benefits. we do all sorts of things that other countries just don't do. medicare and medicaid with no price control. >> it shouldn't be price controls. >> that's -- my point is, there are benefits that the foreign companies are getting and frankly that -- >> but the foreign companies are -- >> and that's why we should change the laws. but my point is -- >> they can do just as well.

>> but in those other countries, those guys are paying much higher personal taxes. >> which is the way we will solve it here. >> and by the way, in some cases, not corporate taxes, but locally. >> you'll see sandy -- everyone goes to zero. so if you're crying to save $20 billion over ten years instead of bringing back $2 trillion right now and not having a capital outflow. >> and a bigger problem, i think, is that it makes american companies more attractive to foreign personnel. and -- >> that's true. >> so it could come in and acquire -- that makes more capital. >> it doesn't cost anyone. >> but one thing we always forget in this conversation, and then we have to get to the next topic, one of the reasons the capital fight gets tougher is because they look around and go where is the real growth? not necessarily here, in all fairness. there are other countries where there's going to be more growth. and i would anterior more.

they also -- if he does anything else. labor is cheaper. >> they build it over there and they don't like -- there's all kinds of solutions. we shouldn't be greasing the skids to make it happen and make it happen more quickly and make it part of the reason someone does that. we don't think private sector in the white house. >> they don't. they think redistribution. they think government is the answer. they don't think private sector. that's the problem. to this day. >> we are going to move on to darchbt topic, your favorite topic that involves tesla, it might involve brothels, joe. and also nevada. elon musk unveiling details of tesla's gig da factory deal with nevada and phil lebeau joins us now from carson city. good morning to you, phil. >> good morning, andrew. there's a debate today about how much nevada is paying to land the giga factory. there's no doubt this is a huge factory. it is coming at a cost and a lot of people are saying is it too much? here is the announcement that

came late here in nevada. tesla will be building its giga factory, it's a $5 billion project. it will be located just outside of reason yo. what will they be getting? 6,500 jobs when the plant is up and running. the estimated economic benefit according to nevada, backside 40 billion directly. indirectly, another $60 billion. they're saying $100 billion. in exchange, the nevada state is giving incentives, tax abatements, etcetera, at between $675 million and $1.1 billion, adding a few other benefits and it's probably coming out closer to 1.25 billion. tesla says that money is critical to getting things up and going to the giga factory. it will be 3,000 jobs immediately. we went out to the site yesterday. they're already moving ground out there, getting things prepared for the giga factory. they expect the plant to open by 2017, possibly by late 2016. elon musk, last night, told me this is not the richest offer from the five states bidding on the giga factory, but it was the

one that had the best opportunity for tesla to get up and running immediately. >> it was the biggest single factory with time participation. because less the giga factory is ready when we need to produce the mass market affordable electric car, then the vehicle factory will be -- time execution is extremely important.. nevada was in the lead on that's the number one in terms of time execution. >> we also talk to elon musk about the company's latest specations, at least those that are coming from wall street. they haven't changed their guidance, by the way. he says he sees stronger demand in the market and i talked to a few other people in tesla would say when you look at china, you're really seeing the strong demand there. but when you look at shares of tesla right now, we talked about this, there have been price targets moving higher and higher with this stock.

and we asked elon musk, are smars of tesla overpriced right now? >> i think sometimes people get carried away with our stock, honestly. because that's -- i think the price is kind of right now, to be totally honest. but look at it this way. if you care about the long-term of tesla, i think the stock is a good price. if you look at the short-term, it's mixed. >> he told me he believes tesla will exceed spec agexpectations long-term. the giga factory, they're moving the ground outside of reno and they expect that plant to be up and running by late 2016 and early 2017. guys, back to you. >> we know exactly where it is. have you heard the name lance gillman, yes or no? >> oh, yes. i've been listening to you guys. >> we're going to talk about that in chairs.

he's a giant, a giant in the brothel industry and it's his industrial park. coming up, how investors should read today's jobs report. plus, the shark tank comes to the squawk tang. this time he's bringing along a 12-year-old success story. the boy wonder of bow ties. do you hear that, andrew? >> i looked for a bow tie this morning. i was contemplating wearing one myself. >> more squawk.

good morning. welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. we are coming to you live, as we did yesterday. i had a map i would say it is pretty close to the heart. i don't know if it was an actual organ of new york city, but if you look at sixth and -- a heart organ. >> i know. >> i don't think you do. i'm not even going to think about how your mind -- well, i don't know how your mind works. but sixth and 50th, can you met how -- >> we're close to your parents. >> it is. >> so would it be a heart or a liver or a spleen or -- >> it is the brain. >> it's the brain of -- >> the brain of the financials. >> it is. and there's a starbucks everywhere, just about every corner, is there not?

and sellers got the message, we're spending the day in the big apple. the coffee chain announcing two new types of stores today. here in new york, it's testing an express location that goal is offering speedier services, which is not seedy and starbucks is not really synonymous at this point. >> depending on what you order. >> depending on what you order. >> skim iced latte. and i told them, i resent you for me saying -- >> that's not available as a quickie -- >> no. but i resent him for eeg putting that into my lexicon and make me feel like a yuppie. anyway, we'll have a limited food and beverage menu. digital ordering will speed up delivery. in seattle, starbucks is assessing a new type of store aimed at satisfying demand for

upscale service -- >> upscale? the company is going to open a 15,000 square foot roastry. come on. you're thinking that's attractive. >> that's the opposite of a speedy -- >> yeah. and it's in a hipster seattle grungy probably neighborhood. >> you think i'm too yuppie for the grande -- >> it is leaning. >> nirvana? >> yeah. >> we are less than two hours away from the all-important jobs report. so how big will this number be for the markets? joining us right now is peter, chief market analyst for the lindsay group. he's a cnbc contributor. thanks for being here today. >> thanks for having me. i feel the level of energy here. >> you do, don't you? >> i do. >> we are about two hours away from this number. do you think the market is more prepared for an up side price or a downside mess?

>> up side surprise. i think we'll have to look at the internals, the wage growth and unemployment rate. obviously, everything that happens today is going to tie back into the fed. interestingly enough going into this number, the two-year low is at a three-year high. so the bond market continues to move towards the fed having to raise rates. and it's not easy to confirm than the. >> if we are, in fact, seeing the fed to the point where they're going to be forced to raise rates, and the ecb is starting its version almost of quantitative easing, that is what i think, too. these are extreme measures and they are getting into something that we are now hoping that we're getting out of. the treasuries, what does it mean for our stock market? >> well, i would say if you build it, will they leave?

counter to that, if the central bankers are now all in and trying to generation inflation? interest rates may start to rise. and we've reached a point where rather than central bankers being happy with this decline in interest rates, they want to cause interest rates to go up by higher inflation. it doesn't make much sense to me for higher inflation if higher interest rates fall. because what is the western world suffering from? it's too much debt. we're going the crash this own party. so if it's very possible we saw the bottom in interest rates, not in the u.s., but in europe, also. this is an epic bubble that we may have seen the end of. >> so i don't know who was on yesterday who made the point that draghi wants to be ben bernanke in many regards. so the question i have is right now ben bernanke looks like a very smart guy where we are. how is history going to look at

bernanke i think in hollywood the same way as mario draghi. >> greenspan's book was not fully written. greenspan, yellen, they all come from the same school, thinking the fed and ecb central bankser have that magic power to somehow make things better. but the medicine they're throwing at things isn't right for what ails us. and they're never learning their lesson. when you have too much debt, lowering the cost of money is not going to matter. >> there's a debate about that. >> they're all good intentions. well, do i think an average spaniard wants higher inflation? if you look at the inflation situation in europe, core inflation at 0.9% in august, it's been pretty flat for the last user. it's because energy and food prices have fallen, that has driven lower the rate of change in inflation. >> 10%?

>> yesterday he said -- >> the bond market is done. >> that was to my point that the central bankers are now all in and generating higher inflation. interest rates with too much debt, and that's a bad combination. >> peter, thanks so much. coming up, bow ties, the boy wonder entering the shark tank and he lives to tell that tale. that's next. "squawk box" live from new york city. we return in just a moment. [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too.

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welcome back to "squawk box." the founder of mo's bows, he's been featured everyone prosecute vogue to chicu magazine. his mentor is daymong john, founder and ceo of pleasant brands and costar of shark tank. good morning to you guys. >> good morning. >> let's show off your ties. you're 12 years owl old now? >> yes, i'm 12 years old. >> and you got this business going and this guy has been helping you? >> yes. he's been a great help. >> and you, by the way, you turned down money inspect. i turned down money to get to day mond. >> tell us what happened. >> mr. wonderful gave me an offer that i would pay him for three ties -- $3 a tie. >> $3 a tie? >> i was a normal, you know, royalty and perpetuity while he had his -- you know, his teeth

in mo's neck. so it was a normal offer. >> and so hold on, when somebody like that, a big name offers you money, you say no. how hard was that? >> it wasn't a hard decides because i know daymond is in the category that i am and i knew that he could help me. >> and in terms of growing this business, you're wearing one of his ties. >> yeah. >> where is this going? tell us what happens. >> first of all, mo, knowing a little bit more about fashion than probably i do, he realized that accessories are the things that are still selling and he wanted to stay really focused in this one area. mo, i think, is going to do about 200,000 from airing on the show, but we've already now talked to big fashion houses such as randall core -- >> $20,000 ties? >> $200,000 in ties. >> he's just warming up. >> you're 12 years old. when did you have time to do this? >> i had time to do this when -- i mean, as you're starting to see, i can do it when i feel

like it and -- >> are there employees to this company? >> yes, i have employees. >> how old r employees? >> well, my grandmother is about, like, 80 and my mom works for me and i have three more. >> do you need a resume? >> how did you come up with this idea when you were 9 years old, mo? >> i came up with this idea because i really love to dress nice and i couldn't find any other bow ties that i really like. so i asked my grandmother to teach me how to sew. after that, would have been on shark tank and many more publications. >> daymond, how did you find mo? and was it an instant attraction? >> it was an instant attraction. it was really on shark tank. we don't know anybody going on the show. he was so adorable, but he had that star power. he was laser focused on what he wanted to do. after that, i just wanted to work with him. and i realized if he were to give away half his company for $30,000, today if that was my business, that would have been

$100 million in somebody's pocket and his mother and him remind me of my mother and i. >> mo, are you a businessman or are you -- do you pick out the designs and the fabric or do you have someone that does that for you and you handle the business end of it? >> well, i pick up the designs because i like -- i like things that pop and i like things that are colorful. >> so you do that? >> yes, i do that. >> do you sew it actually yourself? >> i sew some. like i told you, i'm the ceo so i get to play and ride my bike and watch "phinneas and pherb." >> clearly a process. >> now, you sell ties? >> yes. i do pocket squares. >> are you going to expand beyond bow ties? >> i'm going to do skinny neckties and blazers. i just really want to get into the fashion industry. >> to ramp up production, you're

going to need to, like, listen to people about, you know -- you're not going to be able to sew every one. you're going to have to subcontract. are you going to help with that? >> absolutely. i think if he really gets a strong hold in this area, and then we'll go and license other territories with the people who know how to do it best. >> do you have anything to tell us about what you're doing up there? >> fashion week, i'm launching -- helping launching the brand, the global brand an did i amo. it's a prestigious travel brand. >> it goes right against the -- of the world. they're now opening their own retail, but now the big retailers don't have any way to come and buy that hopeful travel products. then i'm loss charity buzz raising money for the usco -- ufca, excuse me, in honest of the u.s. open. >> awesome. >> when does school start for you? >> school has already started. >> all right started? are you mission it today?

>> yes, i'm missing. >> is there homework? do you need to send the teacher a note or something? >> oh, i have a ton of homework. >> we were just talking about some home schooling. he's becoming a main attraction and people love him. he's a brand. >> gentlemen, thank you. congratulations with this. we are going to look forward to your grand success. and you're going to wear a bow tie? do you know how to tie a tie? >> i'm going to try it. that's a great idea. if you put it around your -- like some woman was -- >> if you put it around your leg and you tie it almost like tying and then take it off and -- >> can you do it? >> i do it since i'm a fashion designer i tie it on my neck. or i tie it in the air. >> oh, my god, no, it wouldn't be quite the same if i did that. watching you do it wouldn't be -- >> i wouldn't want to see that. >> can we get this online or

where does this retail? >> online and my website is m mosbows. >> catch shark tank here on cnbc tuesday nights at 9:00 p.m. coming up, the top companies giving high school grads the best opportunities. that's at 7:00 a.m. eastern time. when we return, another new york city edition of chairs. "squawk box" will be back in just a moment. 0 even on the go. tdd# 1-800-345-2550 open a schwab account and you could earn tdd# 1-800-345-2550 0 commission-free online trades. d# 1-800-345-2550 ...so if you get a trade idea, schwab can help you take it on. d# 1-800-345-2550 we're getting a lot of questions about organic food stocks. tdd# 1-800-345-2550 sharpen your instincts with in-depth tdd# 1-800-345-2550 analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea by a schwab trading specialist.. tdd# 1-800-345-2550 ...our expertise is just a tap away. tdd# 1-800-345-2550 what's on your mind, lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it. tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are. tdd# 1-800-345-2550

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all right. we are in the chair. we got new chairs. >> overnight. >> brand new chairs, the whole thing. >> they're a little bit better. we have better posture. i was leaning forward so much in the light yesterday i looked like walking dead premiered early. it was like october 13. this is everywhere. "usa today" even. lance gillman up near reno is the major player in economic development in nevada which is still trying to crawl out of a recession, as you know. he's the owner of the biggest industrial park in the world suppose aredly. the tahoe/reno industrial center. he made some money in legal

brothels including the mustang ranch who he bought from another dude who had to skip out of town to brazil because of tax evasion. so gillman was are there with the re-opening of the mustang ranch. they had a video afrom the guy n brazil passing the baton to this guy who is a -- >> i wonder if jane wells interviewed him. she did a story. >> he's like the big guy up there. tesla must have been dealing with him. harry reid, depending on who is buttering harry's bread, he loves casino owners. republicans get along with him because it's in his state. he said something negative about brothels that maybe it time to outlaw brothels. i can't believe everybody else would ban brothels as everybody

legalizes pot. the wild horse canyon ranch. then he expanded with the mustang ranch. >> excellent. >> this is the guy that bought the industrial complex. little known thing. >> gooder for him. >> yeah. >> tell me about this. you wear stretchy jeans, right? >> i don't know if i wear them. i bought a pair 90% cotton. >> there is a story that says jeans face an uncertain future amid yoga-wearing rage. >> that's not true. forget it. >> yoga pants are up 7%. apparently women especially -- and i asked becky. are wearing yoga pants. >> they love them, but i'm not going to wear them out. >> people will wear them to the office, they say. >> that's a little weird. >> you don't wear yoga pants. >> i meditate. i know there is a position you told me about called downward dog. i wasn't sure it was yoga.

>> i want to talk about dinosaurs. i want to tell you about a new dinosaur. we thought we knew everything. there is a giant dinosaur they just found. it's called dreadnotus strani named after an old battleship combined with the guy doing the dig. >> that's kind of small. >> as much as a dozen elephants in weight. as tall as two stories at the shoulder. has a 37-foot-long neck . 29-foot tail. when it died it was 85 feet long and still growing. >> that's a big one. >> are you skeeved out now that you know a lot of them had feathers. >> no. >> it's like birds. >> freak thing. yuck. >> when we come back, the nfl season is under way. new england patriots bob kraft is here on football and the economy. bringing along quarterback tom

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and serta mattress sets. even get 24 months interest-free financing on every tempur-pedic. you're going to love their football field-size selection. this calls for a little touchdown dance. don't miss the fall kickoff sale at mattress discounters. ♪ mattress discounters jobs in america. the final countdown is on to the biggest data point of the month. find out who has a help wanted sign in the window. >> tesla's battery factor in 9/11. the details. >> kicking off the football season. >> new england patriots ownerer bob kraft and his quarterback, future hall-of-famer tom brady get in the squawk huddle as the second hour of "squawk box" begins right now.

>> good morning. welcome back to "squawk box" on cnbc. once again we are live from the heart of new york city. that's where business is waking up this morning. check out zeus, the god of tailgating. we'll talk about this. raising the bar on the pregame party. how much would it take pull up to the game in this monster? we'll talk about it later this hour. >> wall street is focused on the big jobs report at 8:30 eastern which saw the adp report this week. a little bit below. we'll see how august fares. we have been above 200,000. it's 220 for nonfarm jobs. unemployment is edging lower to 6.1%. checking the futures after a disappoint session yesterday, some would say. unable to hold onto gains inspired by mario draghi.

the ten-year has been drifting a little bit higher. we are hearing from mumblings. you can see it on the far right. the yield has moved up in the last two weeks. maybe it's time. maybe that's significant. but if it means the economy. you would think eventually you're not going to stay locked at zero. >> right. >> as we continue the employment conversation, a special report on the jobs friday. the companies with the best opportunities for high school grads, jane wells has the story. jane? >> hey, guys. we are just getting the information breaking now. college is expensivement fast food workers want better time. tough for high school grads but glass door, a site where employees rate their companies

has listed the best companies for career opportunity ifs you only have the diploma. in fifth, nordstrom. one salesperson writes they hire from within the company for all positions with few exceptions. nordstrom takes care of their own. a sales associate can make $25,000 a year plus commissions. in fourth, publix supermarkets, employee owned. if you wark hard you will move up fast. an employee went from bagger to cashier in four months. cashiers make $8.78 an hour. chipotle. there is room for tremendous growth, said a team leader on glass door which says managers can make $48,000, $50,000. in second place, whole foods. a lot of opportunities, just work hard and be sociable wrote one employee who moved from cashier assistant to receiver where salaries average $31,000. number one, costco. one tire installer in ft. worth

said, "for people with no desire to get a degree or a trade, costco offers great salary and all the benefits you need for yourself and your family." a general manager at costco makes over six figures. >> thank you for the report, jane. appreciate it very much. that was fun. >> our guest host this morning is a legend in corporate america and the nfl. he's arguably one of the most influential owners in the league. bob kraft is on set with us. he's chairman and ceo of the kraft group, owner of the new england patriots. always a pleasure to have you here. >> great to be with all of you. >> i don't think you would say one of the -- the most. >> no arguing he's one of the. but probably the most. >> i have had people wonder. >> okay, guys. >> hopefully woody's not watching. we're in the big apple. >> this is cool, this this location. i vote for this location.

>> all right. one more. >> he gets two more. >> compared to economists. >> bob, we want to talk about football, business, how things are going. >> great to have football back. i stayed up to the end, your sister station did a great job. al and chris do a great job. >> they do. >> they're pretty special. >> the best. the best. >> football's back. i hope we're getting you good ads, almost rivalling "squawk box" ad prices. >> some day as the sport grows in popularity. >> the atmosphere in seattle was great. >> we're here and football season has kicked off. you have a good idea about what's happening with the american consumer and the economy overall. we talk to you all the time

about the cardboard box cater tor. you have a good idea about what's happening with ticket sales. what would you say now? >> in the packaging business is first quarter we were a little bit concerned. our unit volume was down 1%. but year to date through august, we are up 11%. things are fairly strong. the only weak areas we have seen are military. the biomedical area in our area, the small technology companies, i think with the new health care act and the excise tax they put on roughly 2.5%. it really has slowed that area down in the northeast. that's a very vibrant area. throughout the country, we are pretty strong. internationally, you know, i think the geopolitical events, what's going on in the ukraine, the japan/china situation, and

of course the mideast. people are really weary. our european business has been really off. i think part of it is the currency, too. i think it's going to get exacerbated. in south america and asia it's very strong. >> do you think the u.s. economy gets pulled down or does it persevere? >> i think it's fragile. i don't think most americans can relate to what's going on. it's so complicated, this situation in the ukraine. the whole mideast situation. and what we need more than anything is good strong leadership from washington. i think any of these things could be like a tinderbox in terms of affecting the economy. >> great. we're going to talk throughout the show, bob, about this stuff. you know, you're a businessman first. football is a business. it's good to get out there. >> passion.

>> yeah. you want to do well enough in the world of business to buy the patriots -- i went to school there. i don't remember the patriots being the greatest team when i went to school in the '80s. they were not the greatest team. they were kind of a joke. now we know the difference you have been able to orchestrate and a lot has to do with this guy, another well known face in the world of football joining the huddle this morning. tom brady, i'm told, is quarterback of the team. the new england patriots. tom, i will throw you right into the fire. bob wants the first question. i hope you answer this correctly. >> well, i want to make him feel good. i was working out with harold down in the health and conditioning, strength and conditioning department. he said to me, you know, i was working out with tommy on the field. that man is not 37. the way he performs what he's doing. explain to them the magic elixir

that allows you to do it. >> i wish i had all the answers. you know, it's a process for us football players getting prepared for every season. it's a long off season. there is a lot of work we put in. otas and summer camps to get to this point. i worked hard. i talked about it over the last few months about different things i do that are different from what other players do that helped me. i like to keep secrets for myself. i don't want to give away too much information to my competitors. i'm at a good place, excited for the year to start. >> you want to talk about tv 12 at all? >> sure, yeah. we talked about it a little bit. it's something we started a year ago at a sports therapy center in foxborough at patriot place. we are doing cool, innovative things, getting guys back on the field faster, quicker, healthier

than they have been. it's about sustained peak performance. that's the message i want to spread to kids, weekend warriors, certainly my teammates that there is a better way than what we currently know. some of the old school techniques that have been out there for a long time that don't necessarily work as well as some of the things we're doing. it's exciting. i'm really excited to play football. that's what my focus is on. i'm excited for the year and kpielted to see what the team can accomplish. >> in that regard, maybe joe was asking me whether he thought we could beat the seahawks. i don't know. he's a big pats fan, i guess. >> joe is. you know, they looked good last night. they got a good team. you know, certainly playing in seattle is a tough challenge. we learned it a few years ago. they are a great team with a great quarterback, great coach. you know, they will be tough to

beat. there is a lot that can happen between now and the end of the season. they got off to a good start. hopefully we do the same in miami. >> the last two were great for the pats. there was one game where it ended in the playoffs. you had some injuries last year. i remember kidding you, someone wrote you need passes over the middle with gronk out and i sounded like i knew what i was talking about. off season, you never throw anyone under the bus or blame anyone else. i have seen that. what did you need as tom brady the last two years that you didn't have to get past the team in the playoffs, whichever one -- ravens one year. what was it last year? >> we have gone with the championship game three straight years. >> yeah. it was just the last game that did it. what do you need? was it defense? was it a wide receiver? on the offensive line? what was it?

>> we needed to play better. it wasn't what we didn't have. it was things we had an opportunity to accomplish that we didn't do. we had a great opportunity to be in the games. when you're playing the most important games of the year, you have to be at your best. we don't do it. unfortunately. but it's a new season with new opportunity. hopefully this team can go out and finish. rko says it's the last one out. it's important. we have to figure out how to close that door. >> you had the ravens beat. i might have been there. there were a couple of times you had it beaten and they won it all. >> the reason nbc enough to pay so much money is no one knows what will happen. you can program it and there will be ups and downs throughout the year. we're lucky to have this young man at the helm as our

quarterback. he and coach belichick have been a wonderful unit. i think we have a special, balanced team. you just root that there be no injuries. we lost one of the top defensive starters each week. as long as you have 12 on the field you've got a chance. >> i wish that was the case. >> we have great players. hopefully, we could stay healthy. we have a tough schedule. the nfl is always balanced. the league has done a great job making it competitive. every team at this point of the year is hopeful. we are one of the teams that are hopeful, too. it's about finishing. we've got to get out there and prove it. every week in the nfl you've got to earn it. that's what we plan to do. >> he's got to get into the quarterback meetings, too. >> i think about you as much of an athlete as a businessman. you have sponsorships whether it's uggs or underarmor.

i wanted to understand more. you have taken royalties and equity in your deals rather than cash up front the way most other athletes do. can you speak to that? >> i think i have a lot of great advice from people over the years. it's nice to invest and have partnerships with people you believe in. especially at this point in my career it's nice i can pick and choose certain things. the people i try to align myself, i feel strongly about what they're doing. if they believe in me, i want to believe this them. i want to work hard to make the partnership great for both of us. >> did you agent the underarmour deal with giselle that happened this week? >> though. she's a much better businesswoman than i am a businessman. she's been able to handle those things for herself. nobody does a better job than her. >> it's all in the family. >> tell her to go back to dollars though from euros.

they are collapsing. 1.29 today on the dollar. she's so smart. >> for a while she wanted to be paid in euros. >> time to switch. >> they are the unbelievable team. the real deal. very special people. >> tom, i wanted to ask you about concussions in the nfl. i know the number of concussions went down last year. the nfl is getting arms around this. enrollment in pop warner is down about 10% from 2010. is it safe? look, it's a contact sport. it's out of your control. i think concussions in any contact sport there will be head injuries. it's one thing to get him. it's another thing how to treat. our -- i think we have some of

those things figured out. like a lot of things, i think contact sports and certainly football, is good outweigh it is bad. there are lessons to be learned in football. certainly my children, i want them to do whatever they want to do. if they want to put on a helmet and play football, i will encourage it. i encourage a lot of parents out there to do it. obviously you need to be safe and take the advice of whatever medical professionals you have. we have great ones here at the team. like most injuries it's about rehabilitation, conditioning yourself to do whatever you want to do. if you want to play it, yeah, you have to learn how to adjust and play accordingly. certainly prevention and reh rehabilitation are important to any injury you sustain. >> which teams are still good and which teams do you think might surprise. like kansas city. all of the sudden they were good and it came out of nowhere. are there sleeper this is year? who will be bad that was good last year? can you tell anything at this

point. >> my tarot card is in front of me. >> you don't fear anyone. who are the games you have to get up for early in the season, do you think, that's coming up. >> look, they are all tough. every team is hopeful this time of year. they made player changes. they have done scheme changes. part of the beauty of the nfl is every week you have no idea the margin of error is so slim that one bounce, one turnover could lead to the outcome of the game. there is not an easy game in the nfl. it's very hard to win games in the nfl. we've got to figure out how to win this weekend in miami which is a tough place for us to win. >> jets or the giants, who's better? >> those two -- neither of those are my favorite teams to talk about. >> they're both crappy? >> no, no.

we play the jets. he thinks the jets are tough this year. >> really? >> yeah. >> they looked good in preseason. came back in. >> all right. is that it? >> yeah, he's got a meeting and he'll be fined if he's not there in exactly two minutes. got to help his cash flow. >> does it bother you that gisele already made $6 million while you do this? i don't know. if my wife made -- >> he wants to help ryan robertson and steve burke do better. >> i'm smarter than i look. i'm not just a football player. >> he picked underarmour before anybody -- >> bob, do you want to help brian and steve do better? >> i'm doing my best. >> we'll talk. >> i'm a shareholder. >> i know you are. >> we'll sell the other stock. >> jim cramer says there is a new ad for uggs this week featuring tom and his family, a rescue dog. jim says it's fantastic and pulls at the heartstrings.

>> thank you, tom brady. bob will be with us and you're helping cnbc out today by being on with us. >> i don't know about that. >> you are. i'll tell you. >> nice to be part of the family. >> you are. >> you absolutely are. >> we want you to be a bigger part. we love you, bob. we do. >> we should say also you have no problem with tailgating at the gillette stadium as long as they hit patriot place. we'll check out the ultimate vehicle for the serious tailgater with bucks in their pocket. robert frank takes us through the bells and whistles later this hour. we'll be right back as we count down to the jobs report. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business.

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>> a note from politico's morning money on defending our s'mores. last friday the forest service published an article about how to roast marshmallows suggesting substituting fruit for chocolate and angel food cake for graham crackerers. kevin mccarthy said this captures what's wrong with the dp government. hard earned tax dollars supporting bureaucrats who can't pass up an opportunity to live our lives is. >> amen. >> i hate to see s'mores politicized. >> i can't believe we're having the conversation. >> i'm with him. >> go have a school lunch now. it has all the crispy kale. >> i'm searching for a big gulp. coming up, a jobs shortage in the shipping industry. mary thompson joins us on the hiring opportunities at sea. then zeus, the god of tailgating. how would you like to roll up to the game in this one.

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welcome back to "squawk box," everybody. let's get to the other stories. front and center one fed official says rates are too high. narayana kocherlakota said rates need to be lower because of unemployment and inflation. lego sizing the title of the biggest toy maker in the world. you have the success of lego the movie and related products with it. check out this video. a florida teen hauling in a giant swordfish that weighed nearly 700 pounds and was more than 14 feet longment it took the teen four hours to complete the catch. the shipping industry needs more hands on deck. one company is looking to bring more workers on board. mary thompson has a look at where the jobs are.

>> hey there, becky. we are in the wheel house of the tug boat "scout" which operates in the port of los angeles long beach. we are here because for the past nine jobs fridays we have been bringing stories about how various industries are filling the skilled labor gap. in the maritime industry it's more of a gulf. the international maritime organization says the industry faces a short shall of 26,000 to 47,000 ships officers in the next five years. here's the ceo. >> global trade is growing like we have never seen. it will take more people to build out the infrastructure needed to move goods around the world. >> now the growth in trade is being fuelled in part by the energy boom which is increasing demand for services. over the next five years it plans to hire 500 to 600 workers. finding the workers, especially

the skilled one, is a challenge. why? demand for talent is global. a lot of ships' officers are nearing retirement age. new requirements want more time at sea for the workers, making them harder to replace. >> there is tremendous lead time to get people trained and into positions. maritime academy takes four years plus an additional two years of sea time. if you plan to go a more traditional route where you work on a vessel at an entry level position it can take between five and six years to get up to speed. >> now he works with the academy and the unions to ensure there are enough hands on deck. they are well paid hands. an able-bodied seaman which is the first step before officer can earn $40,000 to $50,000. as a captain of a vessel, you can earn this the six figures. back to you.

>> mary, thank you very much. let's go to bob kraft. he knows about what's happening in shipping. >> we just had a hundred of the international managers come in and it's not quite -- the market isn't quite as vibrant. it creates an opportunity for us we look at where the space and opportunities are. especially to europe, south america, africa. and asia , of course. because of they ship so much here. we see a softening in china, too. i am worried about a trade war there. we have seen it across the board that the shipping has been very soft going back. >> do you think it's because not softness necessarily with the economy, but because tensions between the two nations have risen. >> i think it's a come thabinatf both. wages, real estate, everything has moved up. i think there is a softening there. then i think there is a tension

between japan and china. we have lined up with japan. i think that's all having an impact. that goes back to my geopolitical analysis. i think there are a lot of sensitive things that could really be a downer on our system. that's why we need the leadership in washington. >> where does the business go instead? if we're not doing as much trade with china, if they are not doing as much with us, where do they turn? russia? africa? >> where they will turn. i'm not smart enough to answer that question. it's a fabulous country. our growth in business there has been great. we have seen a softening now. >> okay. bob kraft is our guest host. more from him in a moment. >> it's that way. bugs bunny. coming up, the jobs report pregame analysis and predictions.

ahead of the big 8:30 report. first we kick off the nfl season in style. get ready for the ultimate tailgate complete with bells and whistles. "squawk box" will be back live from the heart of manhattan. you do a lot of things great. but parallel parking isn't one of them. you're either too far from the curb. or too close to other cars... it's just a matter of time until you rip some guy's bumper off. so, here are your choices:

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it's time to tailgate in style. robert frank has a special guest this morning. robert. >> good morning, andrew. tailgating is thousand a $15 billion a year industry. we are here with top shelf tailgate charles malay. how is business? >> doing pretty well . we're ready to get going. >> you served 2300 people last year. are there slots available? >> very few. >> you're almost booked. we have zeus with flat screen tvs, kegs, a private bathroom. it's a man cave on wheels. >> nice toy to have. >> you've got cornhole, beer pong. you do food.

what have you grilled? we have solved the manhattan grilling problem. >> we make our specialty sandwich, an italian filet mignon cheese steak with broccoli rab p e, onions, mozzarella and toasted ciabatta bread. >> this is expensive. you start at a hundred bucks a person. you have done parties for $15,000. why would someone spend that money to sit in a parking lot. >> everyone's having a good time, wants to be together. no one's up uh set. music playing, beautiful girls, great staff. just the place to be before the game. >> even with the corporate boxes people love this stuff. joe, back the to you. you have to come try this cheesesteak. that's a good breakfast. >> i just heard i'm going to preorder one of those. almost like a car coming off -- our executive producer -- >> all right. we'll set one aside.

>> what can i put on it? peppers is this what do? have you seen? >> yeah. onions, broccoli r are abe -- >> no, no, no. >> special sauce. >> beer out here. >> can you ask what's the minimum number of people i need to rent this thing for the day? >> just the vehicle alone costs you $1,000. they start around 30 people. but you have done parties for 200 when they got tables and tents out here. 30 is the minimum for the ultimate tailgate. >> moma has a new expressionist exhibit you will park it in front and bring friends. is that what you're thinking? do some tailgating? >> i was going to go near the ballet. >> that's great. nothing wrong with ballet. what are you saying? >> people in tights and all. it's fine.

thank you. >> football players are are in tielgts, too. >> they are. all right. the miami dolphins kicking off the 2014 season. sunday at home in sun life stadium. oh, my word. against -- stay apart ear . against the new england pat reets. joining us, steven ross from the miami dolphins. chairman and founder of our company. bob kraft is here from the patriots. you had glimmers last year. >> we came close. >> this could be the year everybody is looking forward to it. that's the great thing about football. that's why the fans are looking forward to it. hope springs eternal. >> what's the biggest thing you did since last year? >> we had to replace the offensive line. that was really the big thing we had to concentrate on.

also, hopefully help our offense. we are excited about this year. we think we'll surprise people. we start out early. our biggest competitor is probably the new england patriots. >> what did you say, bob? were you saying you were scared? i think it's what you indicated to me. what did you say? >> i think our people are very concerned about the dolphins. we think they have made great strides. they have improved a lot. they have a good defense. their quarterback is top drawer. they have great receivers. they're a balanced team and it is warm down there. the team is going down early to adjust to it. >> we'll keep an eye on it. >> steve made a big commitment to the new stadium to attract super bowls there. i think a commitment over $400 million. i just wonderer why when you --

that stadium was about 20 years old. it was a dual purpose stadium. what were you are thinking when you converted it? what was your big challenge? >> when i bought the team the two responsibilities is to bring a winning team. to help the fans, bring them to the park, to the stadium is also important. today we know how great it is on television and getting them to enhance the experience is probably one of the most important things you can do. it does a lot for the community. we have it totally sold out. 75,000 tickets. it shows you what it does for the community.

>> can you create a culture like what he's got or the other guys north used to have. >> when i was a youngster, how they were winning and with the undefeated team and everything. not everybody wins. you have to put yourself in a position when the fans aren't coming out there. it's something that i think miami will support a winner. we have to make sure they want to support the team all the time. >> in that regard we have done a lot of research with our fans. there are three things. i know you have done similar things. we just created a cross insurance providian where anyone

can go and it's like a massive sports bar for the day of game. we took out 20 rows of seats in the south end zone and we have a club where season ticket holders can go. they don't want to be tethered to seats. i think you have done similar things. we're wired for w with ifi, one of the first stadiums. over half of our people are using it all the time and having an experience that's better than what's at home. your caple tall improvements will do the same. >> you have to today. we are looking to do those things. what's it doing to margins now that you have to invest this significantly? >> unfortunately we haven't raised ticket prices in five years. it's been hard to attract the fans. with the new stadium we have a roof or sun shade over it.

it's really hot down there in september and october. doing things to upgrade the stadium. i think it will help bring fans out there. to provide the things they want today. and as bob indicated what he did in his stadium, those are the things we're doing. >> the canopy concept you have is clever. i'm impressed. i want to get the benefit of it. we also have variable pricing. we have stabilized pricing and with our preseason games, we had a bigger attendance. we dropped prices in half and then raised the prices so it's the same. >> do you guys like the stubhubs of the world? is that good? >> we don't need stubhub . >> when you look at that -- >> crickets. >> i just touched the third rail of -- >> did you? >>we don't allow season ticket

holders. we have our own exchange that we charge nothing for. we are fortunate to have 60,000 people on a paid waiting list. people put tickets there and they are bought within the system. if someone goes to an outside ticket exchange we pull the tickets. we don't want people marking up our tickets. >> yeah. >> we're not quite as fortunate. >> as a fan you want to see things. >> it's a reason for people to get on the list. there are certain benefits like i'm sure he gives special benefits to the soccer match people. we do that with our concerts. >> we have created a membership program for the fans. really giving them something other than just going to the game and being a spectator, making it a reason to be part of the team. we have different classes. those with families, business people. everybody really goes to the game for a different reason.

you want to attract all the people and give them something more than just going to the game. our membership program has been successful so far. >> all right. we'll have much more still to come. >> go easy on us sunday. >> okay. when we return, the pregame to jobs friday continuing at the top of the hour. we'll bring in the jobs panel of experts for their assessment of the economy. you know them well. mark zandi, kevin hassett and alan kreuger join us. ueger join.

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welcome back. our special guest bob kraft from the new england patriots. they have grown substantially as a franchise in two decades. the nfl has grown as a franchise. i was going to say ad rates have grown. can this this continue? >> i sure hope so. you know, i think we are the one live television product. i know your folks, steve can tell you well and i know les is very excited like having thursday night football has helped them on sundays. selling thursday night. what happened, 97% of all -- is

watch withing live tv games. very little dvr. it's the really only television product that mass audiences want to see. >> now you're the chairman. you run the tv business effectively. >> i'm part of a committee working -- >> so my question, at&t trying to buy directv. you are in the middle of it because you sit in the middle and the deal cannot happen or there is a way out for at&t unless they get the deal with you. >> we're hopeful that's going to close shortly. i think both mike white and randall stevenson will be great partners and we look forward to the deal hopefully happening soon. they have presented our product beautifully. we are really happy to have them. >> it would be better with randall involved. that bolsters the chances it gets done. >> any time there is $50 billion

merger, i assume good things are happening. i don't want to speak for them and their business. >> right. >> it looks like there is a lot of synergy there. >> it looks like the nfl will be the big winner of a deal like that. >> i think we'll do okay. >> they can raise probably the price of the deal as well. i assume randall will want to -- i mean, are people going to be watching the nfl on their at&t device? >> right now verizon has an exclusive with us in that area. but we are considering -- all the different ways we can give to our consumers. you know, we have nfl now which is a customized digital product for our consumers. we'll be considering every alternative and ways to better serve customers. >> it was stunning that the $50 billion dollar deal was contingent upon being able to continue the rights with you. what did you think when you saw it? >> we appreciate how people like nbc present our game, cbs, fox,

espn. they have all done a great job. and the public accepted it. i don't think we have done as good a job at messaging how safe the game is. and how we have improved it. there is something about football and life lessons. tom brady said why he wants his kid to play. you learn about being dependent on the guy left and right next to you, having a sense of team. the spirit that we are trying to bring to washington so we can continue our competitive advantage as a country. i just wish more than played football so they would understand it. >> what team work is about. throwing up interceptions every time they throw the ball. >> very good. >> so in terms of ad rates,

during the regular season, what is it per minute, per 30 seconds? >> 30 seconds. >> what's the highest and -- what's the cheapest i can get something and where would that be? >> you never want to buy the cheapest. >> what's the highest that you get? where is that? >> i think the highest we get is for the super bowl. >> regular season. >> you're very good. i think it would be sunday night football. it started -- by the way, i heard your r ratings were up fo last night's game. even though it wasn't as competitive. you have the presentation. >> sunday night is the highest level. higher than thursday night typically? >> thursday night is just getting started. one of your competitors who attracts a lot of eyeballs, we are told, has more eyeballs than any of the other networks has been kind enough to promote thursday night football. >> you mean total viewers. maybe not in the democrat

graphically attractive advertising. >> it's probably something you understand. >> all right. what does it range for 30 seconds on sunday night? huge numbers? >> very big. >> it's going to keep going up? >> part of the job you're going on sunday night you have a presentation. what fox and cbs are doing, and les moonves did an outstanding job running his network. and espn, the highest rated cable show. >> espn with tennis. >> monday night football. >> have you been watching the open? >> i will try to get over there. >> the espn stuff is vastly superior to the cbs stuff, i think. i'm kidding. >> i thought -- >> it's great. the whole tournament -- did you see -- >> are you a competitive guy? >> did you see last night? two match points federer had

against him. five sets. >> i was watching the football game. >> don't you have -- you don't have a little screen? >> i'm getting one in the new office. you can't dance at two weddings at once. either you're football or ten this. >> we have to run, bob. >> at least in my business. >> thank you very much for being here. >> great to be with you. >> are you leaving? >> yes. >> the jobs report is in the hour ahead. stick ahead. jobs report coming up for the month. and apple adding measures after the naked picture scandal last week. aflac! and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. find out how fast aflac can pay you, at aflac.com.

big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

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♪ working for a living ♪ working for a living ♪ working for a living ♪ living and a working ♪ i'm taking what they're give >> welcome back to "squawk box" on cnbc. i'm joe kerr nanne with becky quick and andrew ross sorkin. we are in the heart of the business and financial and media and garment and -- you name it, we're in the heart of it. we are back to the analogy. we are the heart, liver, spleen. >> the brain. >> i forgot the brain.

>> look at all the people going to work right here. >> that's right. we are about 230 miles away. the jobs report will be released in the growth area of the united states, washington, d.c. growing by leaps and bounds. you are looking at a live picture just outside of the labor department. the futures are indicated about 32 points. we'll take a quick look at the european trading. they had a good session. giving back a little bit today. we are joined by perhaps the finest economist, the most accurate forecaster of jobs. >> wow. >> the leader of moody's. one of the finest. now with his own shot. mark zandi. >> converted. how did i do that? >> mark one zero are taxes -- did you see the op-ed? go to zero.

we won! we did it. >> we did the hard work on the show and convinced them. >> it's guilt from the stimulus he designed. >> i was for it all along. he's known for years. you never tease it out of me. >> is it your evil twin? i read it. i was gratified. it's great to have you here. great to have kevin hassett as well. alan krueger is an economics professor at princeton, former chairman of president obama's council of economic advisers. you're going to get in trouble with your friends at the white house. alan already got in trouble. >> he did? >> he said there's no slack in the work place so we have to end quantitative easing. once they leave they come around to free market economics. how does that happen? >> i don't know. both of the guys have been the defenders of reason in that administration over the years.

economists more than politicians. >> you must have read the op-ed. is that what it is? i had viewers shocked as well. they said, look at zandi. >> i didn't think you were -- that's my hometown, of course. someone sent it to me. oh, comcast. things i need to know. my colleague andrew, we have to work on it together here. alan and kevin can jump in as well. $20 billion in ten years when there is $2 trillion. >> just in terms of if we fix -- this is like instead of giving someone pain medicine when you've got a disease, go to the root core of the disease and cure it. then the patient feels better and gets better.

it's the same. >> don't you think everyone agreed we need corporate tax return? >> why do we keep harping on the tourniquet. >> it seems we can't get there. >> why not fail going to the big place and at least talk about it? >> that's a worthy shot. i'm all for it. if we can't get there we have to do something. thank you. >> thank you very much. >> so am i -- >> you're back with me now. >> how do you like that? >> the president should design something or just say no mergers with foreign entities here. how about that? >> i think the people who care a lot about the deals that might happen, that are already on the table and so on are concern ed about gossip that the president will shut down inversions. it will be over turned in the

courts. until the courts decided it may stop the deals. there are investors thinking about mergers that are very nervous about the potential for an overreach rule in the next few months. >> he's had success stacking the nlrb when he wasn't allowed and all the things they effected have already happened and you can't take it back either. that's part of the problem. >> even when they do something they know is illegal and will be tossed out of the courts it will stop the deals. >> exactly. he'll be in martha's vine yard permanently. >> maybe a political window will will open up after the mid many terms. >> why would it? >> i bet the president gets even more. >> do you think so? >> nastier and -- >> it's hard to know how things shake out. >> did you design the tourniquet, alan? what can the p president do just without congress to stop inversion? >> well, first of all, the president would like to see

corporate tax reform. he's had it in the budgets for a couple of years. i think the options that treasury has on inversions will be limited. when you look back at the discussion, i think you will say they were timid. >> what's the right answer then? >> we need corporate tax reform. no question. our corporate tax code is an embarrassment. the world passed us by in part -- >> you would like to say, thank you, alan. >> i agree. >> you say no tourniquet? i thought you do. >> we are in a situation now where the politics will drive us to do major corporate tax reform and the system will be bleeding until we get there. >> no tourniquet, force the issue, go for the big game. >> that's where i think the politics are driving us to. i admire the optimism that maybe after the election we'll do something. it's a ways off. >> could i jump in with one thing, being the washington guy.

the one thing i'm seeing that's a potential hope is i think the people in the white house think on corporate reform their own caucus is a part of the problem. that they, in fact, the president's budget and mr. camp's house bill look very similar. if they didn't have to worry about democratic opposition, i think they could move something through. i think there is a chance it might happen next year, if the senate goes republican. >> depends on what happens. if there is more corporate tax inversions it may light a fire in terms of a change in the political environment. i don't want to sound too optimistic. it's hard to be optimistic on this subject. it's a possibility. >> the other thing i would worry about is special interests are more powerful now than they were in 1986. corporate tax reform could end up riddled with a lot of loopholes. >> yeah. >> what if we just at least change the thoegs that we are going to tax globally.

i mean, wouldn't that help in terms of at least the money would eventually come back here? i know people say rich people don't spend money. it's not used for hiring. isn't $2 trillion here better than there no matter what happens to it? >> the money is fundable first of all. companies aren't having difficulty raising money to invest in the u.s. but the problem is the income shifting. so i think if we get away from having at least some minimum tax on global income you will see more income shifting abroad. look at how much profit american companies book in bermuda. something like eight times gdp. >> why leave it out there if we were at zero? like zandi is talking about. go to zero, tax dividends, income higher with the individuals. let our corporations compete globally. if there is a race to zero, so be it. we're already there.

then jobs are created here, factories, investment, capital. what has not worked there really? >> as long as we make up revenue in a progressive way, that's fine. >> maybe middle ground. that's a real fantasy. >> why did you write about it then? >> i wanted to say it's where we should be. >> fantasize a lot? >> i do. on this stuff all the timement compare where we should be with where we are. >> was it counter factual without the stimulus? that was your big fantasy. >> that was as close to reality as it gets. >> talking about where we are. >> let's get the numbers. >> sure. what are you fantasizing about? >> $210,000. i add in 6-k for government. 210. no change in unemployment. that's where we have been. >> kev en? >> the interesting thing is i have models to help me call the

number. the one that puts more weight on oh adm is doing better which suggests that mark's hard work is really improving the number. so the adp number that comes out of the model for me is only 202. if we throw out adp you are you get to 240. if it's above that we get to make fun of mark. >> we'll get alan's number when we come back. in the meantime, apple's hack fix. we'll talk about it. plus nieman marcus moving to new york city. the ceo joins us after the break. car smell and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits.

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welcome back. we are about 12 minutes from are the august jobs report. the futures now, take a look. things could change. right now we have red arrows with the dow looking likely to open off 4.5 .s. dow two points off. the s&p down about six points. the world may be in a different

place in a few minutes. corporate thus, apple adding stricter security measures with the goal of keeping hackers out of accounts. that move coming after the wake of last weekend's celebrity photo scandal. apple ceo tim cooke told the wall street journal the company will alert users when someone tries to change a pass word or restore icloud data to a new device. i know you say it really wasn't their fault and they are doing too much now. i think they are doing the right thing. >> i'm on apple's side. i was saying you have been very outspoken. uncharacteristically so. >> i'm not blaming them. >> now people are saying tourniquet implies hemorrhaging. we have to call it putting a band aid on something. >> tax inversion. >> okay. so i'm expendituring. no more tourniquet. it's not like the jugular vein was cut. $20 billion over ten years.

i can't believe you're fretting so much about it. >> we are getting close to fashion week and nieman marcus is opening its first new york city store. the 250,000 square foot store will be anchoring a new retail complex at hudson yards on manhattan's west side. joining us is the ceo of nieman marcus group and steven ross, chairman and founder of the related companies, the developer of the hudson yards. we have talked about it here before. karen, this is a big deal. you're from headquarters in dallas. what's luring you to new york city? >> we weren't in pursuit of a location in manhattan. we are very, very luckyberg dor of good-man is part of our location. we have an amazing location at 58th and 5th. when steve and his colleague tim himmel came to talk about the vision we were intrigued.

initially i was skeptical. the more we discussed it and the more we understood what they were envisioning for the community that they are building at hudson yards and once we dug into the demographic shifts in manhattan and what's going on on the western and southwestern part of the city, we became very intrigued. it's the art part p of what hudson yard will have. bringing it together made it almost the perfect place to build a store. >> steve, we have been interested in watching some of the new tenants you have been luring. we know about others that will be going there. how did you set out who you wanted it to be as some of the tenants in the original opening? >> well, we could see a shift. people do business differently. with the size of hudson yards we were able to create a city within the city.

you look and see where the young people want to be. where people are going at night. we were building rental buildings in the area. we were getting our highest rents in chelsea in the city of new york. there's been a tremendous shift, say, from the upper east side where people want to go, where the highest prices are. to that area. it was the perfect storm. the city and state were spending tremendous amounts of money. if you follow the money, this is where are the growth occurs. it's the only place in manhattan that could grow and had the land to do it. it's growing five times at the pace of any other place within manhattan. >> are you giving karen a deal now that she's an anchor tenant? >> it was a deal that worked for everybody. put it that way. >> do you worry about the distinctiveness of bergdorf which is almost the nieman marcus of new york with having

nieman marcus in moracco? >> bergdorf is higher -- >> even higher end. >> we are ready to go through a top to bottom renovation and we'll elevate it more. it allows room for nieman marcus to come in and serve the affluent consumer but a broader base. our expectation of hudson yards is not only the neighborhood people, west siders but also a lot of international tourists coming in which we somewhat serve at bergdorf goodman but i think it will be a bigger opportunity at hudson yard. >> what markets do consumers feel good in and where are they not so great. >> we are fortunate to have a lot of stores in texas, our home base. in florida they are doing well and business has been strong for a while now. >> i assume the costs of doing

business in new york are higher than elsewhere. the foot traffic has to make up for it. do you expect higher or lower margins to be in a city like this relative to other places? >> it should be consistent with how we do business in other cities. we turns complexity. we are walking into it. eyes wide open. >> is dallas -- is it a city? >> dallas is a city. >> oh, my gosh. it's my hometown. >>no, no, i made a comment i should not have made about denver, a city i like very much. >> it was indianapolis, kansas city. >> dallas was maybe thrown into it. >> you have almost rendered me speechless. >> they are wonderful cities. i'm a huge fan. >> they have downtowns. they are not really cities.

>> please come visit us in dallas. our headquarters are in downtown dallas. >> can you jump out of a commercial airliner and parachute? >> we'll figure it out. >> they only have flights coast to coast. those are flyovers. >> there are a lot of connections in dallas. that's where america's hub is. >> i'm joking. i love dallas. >> we had the 12-year-old from mose bose. >> i can't wait to call. i got his number. >> i'll call him. >> this is his agent. >> he sounds like a smart young man. i will try to connect. >> how do you find uh new ideas? >> is there a new trend? >> we are always on the look for the next up and coming designers. new york is a great place to find designers. between ken downing, our fashion designer at nieman marcus and

our fashion director at bergdorf they are keeping eyes and ears open. they are always doing something like this. it's the next call i will make when i walk outment thank you for the tip. >> thanks for coming in. welcome to manhattan. we're thrilled to see nieman marcus coming in. steve, thank you for everything. >> good luck. >> thank you. >> good luck on the game on sunday. we'll bring more news on hudson yards as it develops. >> excellent. i hope we we go to the awesome city that is dallas. do you have a place to tie the horses? >> coming up, jobs, jobs, jobs. it's the number of the month and later harold ford will join us. he says a forceful response is needed to df defeat isis. international threats, the economy and more. "squawk box" live with the jobs numbers from new york city in a meemt. when change is in the air you see things in a whole new way.

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welcome back. it's the two-minute drill for market veterans. let's get steve liesman who is right in studio. what are your numbers, sir? >> it's out of my hands.

it's the motdle that i created when the government shut down to give you the number. i have 242 on the private sector. i added six for the government which is a random addition. i have 248. >> do you want to give us a percentage? >> 6.6 2 unchanged. >> rick? >> 199,000. i think the streak over 200,000 will probably end. i have a model, too. i pick what i think is a rational number and upgrade it by 35% to 40% to reflect part-time versus full-time. >> do you want to throw out an unemployment rate? do we care? >> 0 or 10% it doesn't matter. if it's 0 yellen will find more idiot lights for the instrument panel. if it's higher she'll probably bring back qe. i'm not going into central banking activity that's in the

field of perverse central banking in my opinion. most of you are grown up to make your own financial decisions. >> thank you, rick. we'll see what happens to the numbers in a minute. when we return, it is the number of the month. the august a jobs report. look at u.s. equity futures right this moment. the game about to start. we'll see what happens to the numbers in a minute. stay tuned on "squawk box" for the kickoff of the jobs numbers in a moment. ing deeply ] [ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. now we invite smokers to quit, too, with our comprehensive program. we just want to help everyone, everywhere, breathe a little easier. introducing cvs health. because health is everything.

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welcome back to "squawk box." the jobs report is less than a minute away. let's check the markets in the meantime. if you look at the futures this morning they have been under pressure. in fact, you can still see dow futures down by 35 points with s&p futures down by just about six points. we are on track now for the s&p and the dow after this week. at this point we are on track to have the first down week in five weeks, if things continue today. a lot is riding on what we will be hearing seconds from the labor department. look at the bond market. ten-year note yielding 4.68%. that's those levels.

if you're looking at just under 2.5%. higher than we have been in quite some time. everything riding on what's happening now. cnbc's hampton pearson is standing by at the labor department. he has the numbers for us. this is the moment we have been waiting for. hat hampton? >> 142,000. august nonfarm payrolls increased by just 142,000 jobs. the unemployment rate, 6.1%. average hourly earnings increased 0.2%. again, the headline number of 142,000 august jobs. below the consensus in the neighborhood of 220,000. private sector job growth in the month of august, a gain of 134,000. net revisions for june and july. net of 28,000. job growth, professional and business services, up 47,000. health care plus 34,000. construction, plus 20,000.

manufacturing basically flat 2,000 jobs. the retail sector lost 8,000 jobs. that was exacerbated in particular in the food and beverage sector losing 17,000 jobs due to a store strike in new england in the market basket. the u-6, 12% even. that's down .2% from july. labor force participation basically unchanged at 62.8%. long-term unemployed down 192,000 to 3 million or 31.2%. of the total unemployed. a flat number, disappointing headline number. back to you. >> real quick, hampton, what do you say about hours worked? >> let me grab it real quick. >> 0.3? >> no, no. earnings per hour is up 0.2.

average weekly unchanged. >> let's get back to the panel for a reaction to the data. rick are santelli. alan krueger. rick, one thing we have said in recent days is finally the euro is going down because they are going to ease. we know now yellen will stay strong and turn into a hawk. if we get enough of these, do you see the day when we once again disappoint and get out of this early? >> i have my doubts that we'll see the type of tighten iing people seem to be surfing. let's get down to the markets. what's the knee jerk reaction? now granted maybe it will reverse. but the knee jerk reaction by

speculators and the equity area was to buy a rotten number. dow futures are down 22. they were down 55. that's a crucial level. some of the low rates may be with over. we are back down to 240. the fixed income market, even with price controls on treasury prices. still accurate. in terms of hourly earnings, 2.1 isn't horrible. i'm remiss to see anything janet or dr. draghi will do will put more money in employee pockets. we read the journal. wonderful story about how companies in europe cannot trim. they have excess capacity. >> right. >> of course prices fall. fuels more wizardry from the central bank. the spiral goes on. >> rick, with the roach motel

where you check in and you can't get out. the way the exit could be messy, is if they lost control or they just can't get out because the economy doesn't cooperate are. they've got to think about new easing or something. that might be given what's happening in europe it might be the more -- >> i don't believe it. i don't believe the data. it's not consistent with anything. it's not consistent with ism, not consistent with adp. not consistent with unemployment insurance claims. here's the intrepid forecast. >> are you saying they cut the numbers? >> no, no. they will be revised higher. there are technical things -- >> jim o'sullivan says august is # the highest -- >> always. >> we revise higher and august is the most revised. >> manufacturing. my gut, i don't know the answer. >> hours were up. >> manufacturing is the jobs down.

it was inflated. >> it was inflated so the reality is somewhere in between. i don't believe it. >> hassett and krueger -- >> can i just -- >> waiting. >> that's my question for alan. whether or not this changes the general sense of where jobs are now. >> as mark said this is anomalous. i thought the wild card is what's going on in the education center. it's difficult in august with schools bringing people back. it's positive news. wage growth for production workers is up 2.5% over the last year. that's a positive development.

this is a blip. maybe things were stronger than they seemed before. the underlying trend is around 200,000 jobs a month. >> i agree. i think you can put it in the bank that if we talk about it next month there will be an upward revision in the 40 to 50 range. the number will be well above 200. the story of the year that we'll look back on is the job market got ahead of final sales a little bit. i think that's what we'll see. >> on the whole issue of skilled workers being hard to find, i'm seeing advertisements out there for employment service companies that seem to be out there offering solutions as if there is a problem now. finding people. you learn anecdote isn't evidence. but there is a lot from the

beige book and other places that there is a change going on in terms of hiring in this country. >> we can check it when we get back to our offices, too. one thing i will be looking for exactly because of what you're saying is are the places like north dakota that have been booming booming less now because they are running out of workers. we can look for it in the details. >> most have been high. >> one of the encouraging things in the last few months is jobs openings have been growing dramatically. now the number of open positions are back to where they were presession. you know, that's indicative of what you are observing anecdotally and a good leading indicator. i'm opening a position at some point. i'm going to hire somebody. >> it's consistent with what steve said. eventually we'll have a tight labor market. it will be hard to fill those positions. given that the long-term unemployed have been leaving the labor force, that will come sooner than people think. >> rick being the skeptic should

weigh in on this debate. >> i don't believe surveys. i think they track equity prices and when you look at the manufacturing attrition we have seen, the purchasing managers at left field a little bit bullet proof. they weigh in on the heavy side. when it comes to things like retail sales and gdp, that's a much more quantitative series or set of data points we are dismissing. things like weather and teachers going back to school, gm, car shut-downs, they happen every year. the same government trying to manipulate interest rates can't do seasonal adjustments. i agree we shouldn't listen to any of the numbers. >> rick's right that the hole in the bull case has been the consumer. how do you explain the economic numbers, retail sales? it would be almost bullet proof. >> how do you explain that the futures are now positive based on this awful number? >> they were worried.

they're dismissing it. >> oh. this is -- >> they are dismissing it. have you been awake the last five years? they're not dismissing it. they find new data. god. >> the point here is that the job market and the economy more broadly is remarkably stable. >> zandi, i agree. i don't think that's why futures are higher. i think knee jerk reaction from traderers, it would take them longer to get to the point where they are riding off the number. it started moving higher. that's a reaction to it. >> let the good times roll. >> they are doing what they think the fed will do. >> the risk going into this number was for a faster fed. >> yeah. >> you heard people say the forecast is the summer of 2015. our risk is the spring. >> true. >> a number like this very mechanically takes some of the risk off at least for a month. very are mechanical. >> since you are the inversion

when a company inverts doesn't it pay the u.s. tax rate on stuff it sell this is the united states still? >> yeah. >> the money they are losing is what the u.s. would have taxed other places that doesn't come back here anyway. >> correct. >> right. >> so how are you even losing money there? how do you calculate it? >> i don't understand how that happens. >> because we had 30 seconds left and i'm asking you. how are you losing money when they invert since they still pay the tax rate here? where are you losing revenue? >> on the revenue that would have come back to the united states government. >> that doesn't come back. >> depends. for a lot of companies it does. >> talk to the ceo about that. >> it's not about the revenue anyway. >> do we have to go? >> they should hide all the money in secret safes in mcdonald's and walmart. then nobody in d.c. will find it. >> all right. >> gentlemen, thank you all. appreciate it. >> it was a lot of fun.

>> the president needs to stop dauking and act. we have a guest after the break. earlier we spoke to the ceo of top shelf tailgate. we'll go outside to check out the ultimate tailgating machine ourselves as we head to break. look at futures after the august jobs report. "squawk box" coming back in a moment. green arrows with the dow looking like it will open 24 points higher. the yellen futures or maybe the zandi futures. back in a moment.

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welcome back. the august jobs report just coming out. disappointing, i think. joining us with more reaction former u.s. congressman harold ford, managing director at morgan stanley. good morning. what do you make of the numbers? are you disappointed or taking the zandi view? >> looking at the numbers you have to be disappointed. listening to the analysis on set august has been a time of year where the numbers come in low. it's hard to measure. we have seen revisions. we have to wait and see. on the face of it, i think there is disappointment. >> what's your experience as mr. morgan stanley? >> i have been on the show several times. i continue to worry about how everyday consumers are doing and everyday working people are doing and whether or not people can find raises and promotions. i don't think the numbers will give confidence. naturally as you look at the world of finance there is a lot of activity.

there is a lot of movement, activity with companies as they are buying, trying to grow and expand. one side of the ledger has a lot of good things happening. you look at everyday folks there is a concern. the number won't raise a lot of hopes. hopefully it's revised up. >> i want to get to the geopolitical issues. where are you on inversion. >> i understand why companies do it. i think unfortunately some in washington tried to paint it the wrong way. if a company is going to buy a company there are reasons why both sides are doing it. there is not a lot of revenue lossment most people understand people are still paying taxes on the u.s. generated revenue. some in washington distorted it. they should come together -- democrats and republicans -- and get it done. >> just solve it, foreign entities will still find our assets more attractive. >> if we don't reform. >> we'll lose them. >> solving it doesn't mean we have to do it piecemeal.

it ought to be broader. >> a band aid. >> i have been here many times. we should lower the corporate tax rate to 25%. >> what about the way we double tax everyone is this they get taxed in that country and here. >> so you're talking about a territorial tax approach. i have no issue with that. if you lookt the big proposals from simpson bowles to the gang of six, all of them contemplate territorial tax system. if you take where they all agree, democrats and republicans, and put it forward as initial legislation you could get it passed and the president would sign it. >> a simple thing but both sides can get there. >> what do they all agree? let that be the starting point. the other thing they shouldn't do is regulate the internet as a utility. i hope washington will stand firm long term on this common core issue which we have talked about as well. >> you're a fan or not?

>> i don't believe the internet should be regulated as a utility. it's an engine of innovation. 21st century's greatest. >> it's quite open. >> i think the light touch should remain. >> what if i told you it will be more expensive for me to get access for something from google or netflix than somebody else? >> the market would likely correct it. there are rules and laws to address unlawfulness. >> let me ask about foreign policy. we teased the subject. >> right. >> you're coming on and said you felt the president needed to be more forceful. a lot of people think the president needs to be more forceful. >> i think arming the ukrainians is something we should do. we are not probably going to be able to allow ukraine into nato

without angering the russians more and prolonging this episode. i do think we should provide defensive weapons to the ukrainians to deal with it. >> the president -- >> already there. the other part is the world wants to be with us on this. the president has to be a leader. his administration, when they make points they make it in a clear, compelling way. sometimes the president is clumsy and awkward in how he says these things. i like the deliberate approach with isis, trying to build a coalition. he has to make a compelling case and not seemingly be all around the map. >> on isis you think he's been forceful enough? >> no, i don't. >> not at all. >> you can't come on television and say we don't have a strategy yet. even if you don't have one. when you listen to his national security adviser and others giving us a sense of what's happening behind the scenes i'm

comforted. i like the sober, calculated, smart approach trying to build a coalition. don't get out in front -- >> what would you do? >> i think if you believe this morning's headline that is coalitions are being built. you find outrage this the middle east including our allies. if that's the case they have a place to come to light. you identify the challenge. put forces on the ground to deal with it. forces meaning not necessarily deploying. have an exit strategy. that's what the president has to focus on. don't speak if you don't have a strategy. >> outrage from our enemies really. >> the outrage is not just our allies. even our enemies are expressing outrage. it's a terrible way to come together. but, golly, we're buddies with iran on this which is crazy. >> it shows you how -- david brooks said it well this morning in the times. at the end of the day a superior vision of islam has to emerge for us to win on this front. we have a short-term challenge

trying to prevent some of the atrocities taking place at the moment. long term we have to figure out how to be a part of offering, even the if it means aligning not in a long term way but a way we are offering a vision. >> a way to offer a vision that everyone can embrace. >> we had four people saying these are fake numbers, don't worry about them, yet the market was turned from down 50 to up 206789 if the market was looking past the numbers and not believing them, why not stayed down 50 and not further? why not gain 70 points? why in the past, just stay down 50. >> steve said the same thing. anticipating a big number. >> that's dangerous. we're all counting on her following through. >> and a better economy. >> right, and following through on this. >> how does she not? >> exactly. >> i'm asking you. >> we had people in here say the first rate hike is not until

late '16, and we laughed at them. maybe more and more likely. >> well, i don't know. >> thank you for being here. >>ed good egood to see you. >> millions of dollars in the bank, earning half a percent -- morgan stanley money, earning half percent. >> it's in equities, baby, and janet's helping. >> resemble a quarter of what you're saying. >> all in sun corp. family dollar rejecting a revised proposal from dollar general, cramer's take in the latest twist of the deal saga. that's next. coming up on monday, squawk market master, the ecb's surprise move, plus arn arne sorenson on the pulse of the consumer. back on the farm. we're leaving paris and going to the farm next week. i don't know how to do that. >> i like this place.

>> i do too. >> i know, i do too.

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revised proposal from dollar general, hard to keep straight, citing antitrust issues. jim cramer joining us now, three players there, i don't know, jim, i'm more interested in this discussion we're having. so either the market shrugged off what they don't believe are bad jobs numbers, or the market thinks maybe it puts the fed further out on when it does the first increase. i would figure if the market's down 50 and says, oh, i don't believe the numbers, it stays down 50. to move 70 points upward, isn't that more of the same of just traders love the fed? >> yeah, i think it is. mr. zandi is good, when he said, look, the number, i don't believe it, i can't fore say, you know, you don't know what you're doing. he's tooed go egood. that's why you have him on. we had the paychex ceo on, they

are trying to figure out what is the right move. i think there's a bit of a pause, but i think the economy is strong in the country so hard to reconcile the numbers. >> right. the fed didn't look and say, well, let's put off the first rate increase, put it off a couple months, did they? >> well, i think the fed -- there's no reason for the fed to do anything other than the fact they should appease people who come on shows screaming they should do something. deflation's actually decreased. on a micro level, deflation peaked in june. there's nothing until people are participating in the labor force. the hours worked were not that strong. look, there are questions. it's just that when we have auto nation on and some of the great retailers of yesterday, it's very confused. affordable care act is difficult to figure out for businesses. maybe there's a freeze. >> okay, all right, jim. you're right down the street. >> i know. >> feel like we're neighbors. see you later. kicking off the nfl's opening

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>> first try. >> tailgatings's popular, but football season, it's more popular, $15 billion a year in the industry. i got a fillet mignon sandwich. >> have a good weekend. >> have a good weekend, everybody, see you monday. ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. the smallest begin since december, futures mixed, we'll see if the s&p avoids first four-day losing streak of the year. our road map begins with a question, is the economy stuck? the jobs number revealing growth slowed to the lowest level